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Divestitures and Other Relief Will Preserve Competition in 15
Metropolitan Areas

WASHINGTON, D.C. -- The Department of Justice today required Allied Waste
Industries Inc. and Republic Services Inc. to sell waste collection and disposal assets and agree
to
contract modifications, affecting a total of 15 metropolitan areas, in order to proceed with their
proposed multi-million dollar exchange of assets. The Department said the original proposal
would have resulted in higher prices for waste collection or disposal in these areas.

The Department's Antitrust Division filed a lawsuit today in U.S. District Court in
Washington, D.C. to block the proposed transaction. At the same time, the Department filed a
proposed consent decree that, if approved by the court, would resolve the Department's
competitive concerns and the lawsuit.

"The relief required in the consent decree was necessary to prevent consumers in several
parts of the country from having to pay higher prices for waste collection and disposal," said Joel
I. Klein, Assistant Attorney General in charge of the Department's Antitrust Division. "The
terms of the decree will ensure that the benefits of competition--lower prices and better service--
will be preserved in these areas."

According to the Department's complaint, the original proposal would have substantially
lessened competition in waste collection or disposal services in 15 markets in Florida, Georgia,
Indiana, Kentucky, New Jersey, New York, Ohio, Tennessee, and Virginia. In each of these
markets, Allied and Republic are two of only a few significant firms, and in some areas the only
two firms, providing commercial waste hauling, roll-off waste hauling, or municipal solid waste
disposal services. The exchange of assets by Allied and Republic would have eliminated a
significant competitor in each of these areas, and allowed the remaining company and its few
remaining competitors to coordinate their pricing, creating higher prices for consumers.

Commercial waste hauling is the collection and transportation of trash and garbage stored
in small metal containers or dumpsters, generally by specialized front-end load trucks, from
establishments such as office and apartment buildings and retail businesses. Roll-off waste
hauling is the collection and transportation of large disposal containers holding larger volumes
or
bulkier items of waste from sources such as construction sites and industrial plants. Companies
offering municipal solid waste disposal services, such as Allied and Republic, accept trash and
garbage collected by waste haulers in disposal facilities such as landfills, incinerators, and
transfer stations, which process and legally dispose of waste for a fee.

In addition, Allied and Republic have agreed to alter their existing contracts and offer
new contracts for waste hauling services in Albany, New York; Augusta, Georgia; Burlington
and Camden counties, New Jersey; Clarksville, Tennessee; Columbus, Ohio; Lakeland, Florida,
and the counties of Escambia, Santa Rosa, and Okaloosa, Florida; Louisville,
Kentucky/Sellersburg, Indiana; Macon, Georgia; Monmouth County, New Jersey; and Norfolk,
Virginia. The proposed agreement requires Allied and Republic to comply with fixed
limitations
on the length of the contract, notice of contract termination, and liquidated damage provisions in
their new and existing contracts.

Allied, headquartered in Scottsdale, Arizona, is the second largest waste hauling and
disposal company in the United States. In 1999, Allied had sales of approximately $6 billion.

Republic, which is based in Ft. Lauderdale, Florida, is the third largest waste hauling and
disposal company in the U.S. Republic reported revenues of $1.8 billion in
1998.

As required by the Tunney Act, the proposed Final Judgment will be published in the
Federal Register, along with the Department's competitive impact statement. Any
person may
submit written comments concerning the proposed decree during a 60-day comment period to J.
Robert Kramer II, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice,
1401 H Street, NW, Suite 3000, Washington, D.C. 20530 (202-307-0924). At the conclusion of
the 60-day comment period, the U.S. District Court for the District of Columbia may enter the
Final Judgment upon finding that it serves the public interest.